IDFC First Bank Ltd (BOM:539437) Q4 2026 Earnings Call Highlights: Strong Loan Growth Amidst ...

This article first appeared on GuruFocus .

Release Date: April 25, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript .

Positive Points

• IDFC First Bank Ltd ( BOM:539437 ) reported a 20% year-over-year growth in loans and advances, reaching Rs 2.9 lakh crores.

• The bank's credit card portfolio crossed 4.5 million, with a strong growth of 21% year-over-year.

• Asset quality improved, with the gross NPA ratio decreasing from 1.69% to 1.61% and net NPA ratio improving from 0.53% to 0.48%.

• Collection efficiency for microfinance improved significantly, reaching 99.7%, almost touching pre-crisis levels.

• The bank's capital adequacy ratio stands at a healthy 15.60%, with a CET1 ratio of 13.73%.

Negative Points

• The bank faced a one-off fraud incident impacting profits, with a post-tax impact of Rs 480 crores.

• There was a trading loss of Rs 159 crores due to the widening of yields during the quarter.

• Deposit growth was modest at 1% during the quarter, affected by various factors including the fraud incident and tight liquidity.

• The bank's cost of funds remains a concern, although it has decreased to 6%, it still impacts profitability.

• The bank's return on assets (ROA) is currently at 0.5%, indicating room for improvement in overall profitability.

Q & A Highlights

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Q: Can you comment on the monthly deposit accretion and whether the bank is back to its normal growth pace after the recent crisis? A: We are confident that the crisis is behind us, and you will see strong growth in Q1 FY27. Despite the flat growth in the previous quarter, new account openings remained strong, and we expect growth to resume this quarter.

Q: What are your expectations for margins going into next year? A: The margin for the full year was 5.75%, and we expect it to remain stable around these levels into the next year.

Q: How do you see the asset quality trends, especially in light of the ongoing West Asia crisis? A: Asset quality trends are stable. We have undertaken a comprehensive review of our portfolio to assess exposure to potentially impacted sectors. We are adopting a cautious approach, but the immediate impact is expected to remain limited.

Q: Can you provide guidance on the credit cost for the next year? A: We expect the credit cost to be in the range of 170 to 180 basis points, which includes some benefits from the CGSME cover.